by Carrie Moritz, Gazette
It's no secret that Garretson, and the state of South Dakota in general, is in the middle of a childcare crisis.
This was the focus of a meeting between three local daycare providers and a senior policy analyst for the office of Governor Kristi Noem at a roundtable meeting two weeks ago.
Not only are parents struggling to afford daycare, but providers themselves are struggling to keep up with costs as inflation rises, and struggling to hire or keep employees as potential applicants look for better hours or better pay.
Garretson has one childcare center, Blue Dragon Academy, and one full-time in-home daycare provider. Blue Dragon Academy has maintained a waiting list of over 30 children almost since they opened the doors to their new building in June 2019, which had increased their capacity from 80 children in two facilities to just over 100 children in the single facility.
In response, the board of BDA began working to enact plans for expansion. They successfully secured grants and a low-interest loan in record time, and will begin building a 3900 square-foot expansion by the end of July.
"We're adding an addition of 3900 square feet," said board member Kris Frerk to the Garretson City Council at its meeting on June 13. "Our current building is 6100 square feet with 109 children, and we have over 40 kids on the waiting list."
The expansion will help alleviate the need for space, but it won't reduce the need for childcare employees, which have been difficult to find and keep. This, along with other issues, was why the roundtable was called.
BDA Director Heidi Fink, along with Kari Sundermann of Playhouse Childcare Center in Baltic and Melissa Boehrns of Crooks Community Child Care Center, met with Laura Ringling, a senior policy analyst with Governor Noem's office. Fink had reached out to Governor Noem's office with the goal of having Governor Noem herself tour the facility and discuss the issues.
"Her schedule did not allow [that] so we set up with Laura and then I contacted the other two directors who I am in contact with on occasion," said Fink. "Our goal was to speak our opinions about concerns with childcare in the state, lack of support we feel now and all through the pandemic, and the importance of quality childcare."
The meeting was wide-ranging, and Ringling said it was eye-opening, but mirrored concerns from all over the state as she met with other childcare providers.
Being taken seriously as teachers, and hiring staff who were willing to work the long hours, were highest on the list of concerns. Sundermann pointed out that she has a lot of difficulty keeping staff in the 9:30-6:00 shift, and was considering closing at 5:30 p.m. instead.
"We aren't taken seriously," Fink said, while Boehrns and Sundermann pointed out that many of their applicants consider this important work as "just a stepping stone" to a better job.
Fink reminded Ringling that children learn 90% of what they're going to learn by 5 years old, setting the foundation for further educational success, and that childcare providers and teachers are not taken seriously. Consistency in childcare and trust in teachers ensures that the foundation is strong.
According to the Sioux Falls Childcare Collaborative, children aged 0-5 spend 88% of their daytime hours with a childcare professional, but according to a report released by the South Dakota Department of Social Services in 2017, most centers reported a turnover rate of 24-30%. The three directors in attendance estimated that rate has increased in the past nine months.
"There are some centers that have to rotate kids in and out because they don't have the staff," said Fink. This meant that there would be days or weeks where parents wouldn't have care for their children, which in turn impacts those parents' jobs.
Part of the problem is low wages.
For the longest time, daycare providers had wages at or just above minimum wage, and no benefits. Parents, who are paying on average $200 per week per child in a state where the median income is $60,000 per year, find rate increases to be a huge burden.
But increases in wages and benefits and an abundance of openings elsewhere has enticed potential applicants to say no to daycares as a source of employment, leaving providers stuck.
"We've raised wages three times in the past year just to keep staff and it's killing us," said Boehrns.
It's estimated that starting wages need to be $18 per hour in order to attract quality applicants.
Each of the providers said they were working hard to keep their wages consistent with Sioux Falls, but the subsequent rise in rates has been hitting parents hard.
"Not that I want to stick it to the parents, but my only source of income is from the parents," Sundermann said. She pointed out that parents needed childcare to survive, as well, which justifies the increases.
On average, a parent in the Sioux Falls area pays $3.27 per hour per child, according to the Sioux Falls Childcare Collaborative.
The SFCC points out that rates and wages has always been a delicate balance. "The childcare crisis was always looming. COVID, increased competition for workers, and economic pressures created the perfect storm. While the crisis highlights the short-term needs, the system requires long-term systemic solutions."
SFCC also notes that the gap between charged rates and wages equals out to a shortage of nearly $5,808 per child per year for providers. It is estimated that the true gap is more than $10,000 per child, according to the Department of Health and Human Services.
Burnout among staff and directors is also an issue. Staff tend to work long hours, often with a lack of support because there aren't enough employees to spread the work.
The directors said lowering staff to child ratios would help reduce burnout among staff. Currently, infant ratios are 1 staff for 5 infants, which Fink believes is too high. Changes in parenting styles and infant care have made it necessary for staff to spend more time one on one with infants, and she believes that a ratio of 1:4 works best.
The problem is, that would add to the staffing issues they already have.
The lack of benefits is also keeping potential staff from applying. There's no childcare provider insurance pool, for instance. So, despite working full-time hours, most childcare providers have to rely on a spouse, a second job, or subsidized government services in order to obtain health insurance.
Ringling mentioned the idea of a provider insurance pool was a good one, as was providing more educational opportunities for staff. She suggested that having childcare providers work together to provide those resources would probably work best.
While the three directors agreed, they also pointed out that the business was fairly cutthroat, with plenty of animosity between competing providers. Fink, Sundermann, and Boehrns working together as well as they do is unusual, they said.
They suggested that additional funding would be the biggest boon. The American Rescue Plan provided $60 million to SD state licensed providers via DSS, and each director said those funds were an enormous help. However, once those run out, they aren't sure what they'll be able to do next.
"Childcare is such a necessary part of what makes our state strong," said Ringling. "Having quality childcare options for families is so important, and I understand that it's hard work."
While Ringling said she would bring those concerns to the governor, questions posed by the Gazette to Ringling regarding further funding were unanswered as of the time of publication.
Blue Dragon Academy, and the community of Garretson at large, is excited about the new expansion. However, there have been many hurdles which have been overcome in order to keep BDA as a high-quality facility in Garretson. Fink hopes the state can find ways to help registered childcare providers with benefits, employee attraction and retention, and regulations.
